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When we look at these seven significant obstacles when starting an online business, or a lot of companies in general, you’re looking at these main seven points:
- Lack of direction
- You don’t have a product
- Getting the eyeballs such as traffic
- Building a team
- Talking with your customers
- Focusing on high-value tasks
These are some of the significant issues that I see entrepreneurs, freelancers, or online business owners make when it comes to trying to build an online business.
Lack of direction
Now, you’ve got an idea, and you start going a bit this way, then you go back. You make some twists and turns.
There’s no real clear path of what you’re trying to do. There’s no plan. There’s no vision. It’s all over the place. Kind of like hitting a golf ball not closer to the hole but just hitting it around on the course and not having any direction or systematic approach. Hole one, Hole two, Hole three.
Lack of direction — I see all the time when it comes to entrepreneurs or people trying to start an online business.
There’s no specific strategic focus. They’re just trying to fly by the seat of their pants.
Second Major Problem is No Product
How are you going to get the money? That’s one of the big things when it comes to business. The whole point of a business is to go ahead and generate revenue. Ultimately, you’re giving someone a higher value product that they’re willing to exchange money for.
But how are you going to make money from that business if you’re thinking you’re just going to do ads? Well, ads are fine and great, but you need thousands of hits on your blog or website to get any revenue or traction. Or if you’re starting a YouTube channel, same concept. It would be best if you much had much more action to get that going.
The thing is, you might get sponsorships. But again, why would people sponsor you if you don’t have the traffic?
Starting with a product, even if it’s a product for seven dollars or seventy-seven dollars, gives you a leg up. Now, you could sell to a thousand people, two thousand people, or even twenty people that buy a seventy-seven dollar product. You currently have something of value that you could put into for all the other expenses that you’re going to encounter. Such as the accountants. Such as email marketing or any marketing or promotion or advertising or hiring a team.
That revenue is needed and necessary to keep your business operational.
The next big hurdle I see is getting eyeballs or traffic.
It’s hard for a lot of people to understand.
You’re not generating or creating traffic. It’s the internet providers that create traffic.
All you’re trying to do is you’re trying to get a piece or portion of that traffic from their website to come to your website. That’s really what you’re doing.
The next thing is building a team.
If you’re doing it all on your own, a solopreneur, that’s perfectly fine. You can still be a solopreneur with a three-person team because you’re again doing most of it yourself. But, if you don’t have a team, there’s going to be so many tasks that you don’t have the time to do.
For example, I might record this video right now but then to list it on my website, to do the description on YouTube, to do the thumbnail — all these things, and you can outsource. Same thing with let’s say live chat support, a lot of those things you can start outsourcing to other people. Now, you’re able to focus on high-value tasks that we’ll talk about in a second.
One of the other things that people don’t understand is FINANCIALS.
The revenue part of this has to do with having a product as well but if you’re buying every single tool out there, and then the next one and then you go add all these kinds of cool features — I got a 1-800 number, I got a live chat — like things that you could pay for on a month-to-month basis.
All of a sudden, your monthly expenses start to add up high and huge. And you can’t afford to run and operate the business.
You have to cut costs to become slim, especially at the beginning.
As you become more substantial, you’re generating a good amount of revenue, of course, you could have a live chat because a live chat for let’s say you know depending on how many people are coming to your website. Sometimes they have it based on ticket operators, let’s say cost you $20 a month.
Well, if you’re a small company and you’re not making a lot of revenue, it eats into almost a one customer purchase.
Whereas, if you’re making up 2,000/3,000 a month, you may need to pay a little more $35 for more traffic. It’s not as huge and on a percentage basis.
It’s all about the scale of large numbers.
Number six, talking with customers.
A lot of people don’t know how to talk, speak, and engage with their customers. You might be talking about things about yourself — like if you’re creating a recipe showing people your recipe or cookbook, you don’t know how to communicate those things.
You need to know how to speak to your customers and your audience, and that way, you can link them back to your product.
The last thing is focusing on high-value tasks.
Let’s say I owned a brick and mortar store or shop. It could be something like a gas station; it could be something where we sell retail and clothes. Well, I could be the salesperson of that business, or I could be the chief of everything officer, the CEO, and hire my team and find new good products.
Ultimately, high-value tasks are things like products, marketing, and people.
When you look at these things, these people could be your customers, or it could be your team. These are the things you’re focusing on.
You’re focusing on cleaning, let’s say the toilets – not that that’s a lousy job to a degree because it needs to be done. But as a business owner starting a business, you need to focus on products, marketing, people – these are the key. These are the things that will grow your business.
Whereas, if I sweep the floor, if I reorganize the shelves -that’s not necessarily going to grow your business. It makes your business more presentable, but it’s not going to build it.
So focus on high-value growth-related tasks that can step things up in your online business.
These are the seven significant obstacles you may encounter and some things to focus on as you continue to evolve your online business further.
Of course, there are other tips and ideas out there, this is just a starting point.